Sam Watts

This document provides an overview of an experience study conducted for the North Carolina Retirement Systems, covering the five-year period from January 1, 2020, to December 31, 2024. The study's primary purpose is to determine and recommend actuarial assumptions and funding methodologies that will serve as the basis for valuations from December 31, 2025, through December 31, 2029. Key areas of review include demographic assumptions (mortality, retirement, termination, disability), economic assumptions (interest rates, inflation, wage growth, merit increases), funding methods (amortization, actuarial cost), and administrative factors, aiming to ensure accuracy and financial soundness for future pension valuations.

The meeting discussed the actuarial valuation of the Consolidated Judicial Retirement System (CJRS) as of December 31, 2024. Key topics included membership data, asset valuation, benefit provisions, actuarial assumptions, funding methodology, liabilities, funded ratio, and contributions. The actuarial valuation is performed each year to replace the estimates the actuary assumed for the prior valuation with the actual events that happened. The actuarially determined employer contribution rate (ADEC) was also a key area of focus.

The meeting discussed the actuarial valuation of the Legislative Retirement System of North Carolina as of December 31, 2024. Key topics included membership data, asset data, benefit provisions, actuarial assumptions, funding methodology, liabilities, funded ratio, unfunded actuarial accrued liability, and contributions. The actuarially determined employer contribution rate for the fiscal year ending June 30, 2027, was a significant point of discussion. The board also reviewed potential risks such as investment risk, longevity and other demographic risks, interest rate risk, and contribution risk.

The meeting included discussions on ethics awareness, legislative updates, investment updates, and executive director updates. Also covered were policy, planning, compliance, member services, payroll and operations. The agenda included discussion on member contributions, a report from the Advisory Panel of the Firefighters' & Rescue Squad Workers' Pension Fund, a Line of Duty Death Benefit Funding Report, and determinations regarding supplemental insurance rebates. The Contribution-Based Benefit Cap (CBBC) Report and LEIA Determinations were also reviewed.

The meeting included discussions on various topics such as the introduction of new and reappointed board members, ethics awareness, and updates on policy and compliance, including the Inactive Employers Report and federal judicial decisions. Updates were provided on member services, payroll operations, investment advisory committee meetings, and legislative matters, including the State Investment Modernization Act. The board also discussed the local government loan program, employer contribution rates, and the application of the Thomasville Tourism Commission to become a participating employer. Additionally, there were discussions on the New Firefighters' and Rescue Squad Workers' Advisory Panel appointment, implementation arrangement authorization, and the annual report on supplemental retiree insurance.